The Spanish Market Went Bananas — And It's What's Driving The US

UPDATE: The huge Spanish rally sustained itself. Spain gained 3.4%.

ORIGINAL POST: Here’s a good summary of what’s happening today, courtesy of Michael Block of Phoenix Partners:

October NAHB inline at 41 vs. 41 consensus, 40 prior.  Present and Future Single Family Sales stayed constant, but PROSPECTIVE BUYERS TRAFFIC GOES FROM 30 TO 35.  Interesting.  Northeast, South, and West all better, Midwest worse.  Number is fine and supports all of the other excitement today.  WE ARE HIGHER ON SPAIN CHATTER ESP THAT ESM CREDIT LINE BIT.  Not Vikram.  Not GS.  But lack of disaster, decent #s vs. Expectations are the backdrop.

Indeed the big red bolded part is the key story.

Spain is up 3.1% on these headlines that Spain may be able to get a bailout merely by opening up a credit line.

Here’s the intraday look at the IBEX 35 index, via Bloomberg.

image

Photo: Bloomberg

The US data today was fine, but not spectacular. The Dow is up over 100 points because of Spain.

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